OpenAI Faces Multiple Lawsuits While Weighing Action Against Apple

AI developer OpenAI is facing a series of legal challenges and partnership disputes. The company is currently awaiting a jury verdict in a high-stakes lawsuit filed by Elon Musk in Oakland, California. Musk alleges that OpenAI and CEO Sam Altman breached a charitable trust by abandoning the company's nonprofit mission in favor of a for-profit model, seeking $150 billion in damages. Closing arguments for the trial concluded on May 14, 2026.

Simultaneously, OpenAI is defending two class-action lawsuits in California alleging the company secretly shared sensitive user data, including prompts and email addresses, with Meta and Google via tracking tools like Facebook Pixel and Google Analytics. In Chicago, the company has asked a federal judge to dismiss a lawsuit from Nippon Life Insurance Company, which claims ChatGPT engaged in the unauthorized practice of law by aiding a pro se litigant.

Amidst these disputes, OpenAI is exploring legal action against Apple Inc. The AI startup has retained an outside law firm to evaluate a breach-of-contract claim, alleging that Apple deliberately limited the visibility of ChatGPT within Siri and iOS 18.2, leading to subpar subscription growth. Apple has countered with concerns over OpenAI's privacy standards and the aggressive poaching of more than 40 Apple engineers for a new smartphone project involving former Apple executive Jony Ive. Apple is further diversifying its AI strategy by partnering with Google for Gemini models and testing Anthropic's Claude for future updates.